[ACCESSWIRE]
VANCOUVER, BC / ACCESSWIRE / January 27, 2015 / Gener8 Media Corp. (CSE: GNR) ("Gener8" or the "Company") is pleased to announce a licensing and 3D conversion partnership with the Prime Focus Group ("Prime Focus").
According to the terms of the definitive agreement (the "Transaction"), Prime Focus will enter into an exclusive worldwide license to use the Company's proprietary 3D conversion technology throughout the entertainment industry. The Gener8 brand and team--which has become synonymous with top-quality 3D conversion in Hollywood--will continue to provide even more capacity for the 3D conversion business with help from the Prime Focus worldwide workforce. This will give Hollywood more confidence in Gener8's ability to perform 3D conversion on a larger volume of movies. Further, by licensing the Company's technology, Prime Focus will push the quality and technical standards of the 3D even higher.
"We could not hope for a better partner in this transaction, and we strongly believe the partnership will be good for Hollywood and the 3D conversion industry," says Rory Armes, Gener8 CEO. "This is the absolute perfect agreement for both parties--it facilitates the spread of technology to help improve the quality for all in the industry, while also allowing Gener8 to prove it can handle greater volume, which has been what has held back Gener8's ability to grow. It is exciting to tap into Prime Focus's production systems, experience and workforce."
"We are focused on building a comprehensive creative services business, with an emphasis on visual effects and 3D conversion services. Our strength to date has been our significant offshore capabilities, which have now been enhanced by our technology partnership with Gener8. As well, with our recent merger with Reliance MediaWorks, we can leverage the Reliance infrastructure as a back end to help Gener8 increase capacity," says Namit Malhotra, Prime Focus CEO. "This partnership will harness the strengths of both companies to create the best options for Hollywood in terms of 3D conversion and visual effects and leverage the existing workforce and scale of Prime Focus's production capacity in India."
Upon Transaction closing, Prime Focus will enter into a five-year worldwide exclusive License Agreement to use its 3D technology. Total consideration payable by Prime Focus to the Company over the five-year period will range between $11.5 million to $16.5 million. The Company and Prime Focus will also enter into a Technology Services Agreement, where the Company will provide technical service and support on a cost recovery basis. Proceeds from the Transaction will be used to grow the Company's 3D technology as well as our other new and disruptive technologies, Cumul8 and Reelhouse.
The Transaction is subject to customary closing conditions, including obtaining all requisite regulatory and shareholder approvals. The Company has set a meeting date of February 25, 2015, for shareholder approval of the Transaction. Further details will be outlined in an Information Circular distributed in advance of the meeting. If approved, closing is anticipated to occur shortly thereafter.
About Gener8
Gener8 Media Corp. is a media technology company led by a team of gaming industry veterans. At the forefront of postproduction, the company earned its stripes by developing a proprietary 3D conversion technology, garnering high-profile credits including Godzilla, Maleficent and 300: Rise of an Empire. Gener8 has since expanded into offering visual effects services and a cloud-based data management and analytics solution called Cumul8. With its focus on developing disruptive solutions that combine design and technology, Gener8 funded and then acquired a majority interest in Reelhouse Media Ltd., an online entertainment distribution start-up. Gener8's head office is located in Vancouver, British Columbia. Visit the company website at www.gener8.com.
About Prime Focus
Prime Focus, the world's largest integrated media services powerhouse, employs over 5,500 professionals in 16 cities across 4 continents and 7 time zones. We provide end-to-end creative services (visual effects, stereo 3D conversion, animation), technology products & services (Media ERP Suite and Cloud-enabled media services), production services (shooting floors/sound stages, equipment rental) and postproduction services (Digital Intermediate, sound, picture post) to Studios, Broadcast and Advertising industries.
Prime Focus is behind path breaking technologies like CLEAR(TM) (Hybrid Cloud technology enabled Media ERP Suite), Primetime Emmy(R) award-winning DAX Digital Dailies(R) and View-D(TM) (stereoscopic 2D to 3D conversion process). Leveraging our Global Digital Pipeline and pioneering delivery model WorldSourcing(R) we partner content creators at every stage of the process ensuring creative enablement, work flow efficiencies and cost optimization.
In mid-2014 Prime Focus Technologies acquired DAX, a leading provider of cloud-based production workflow and media asset management applications; Prime Focus World merged with Double Negative, one of the world's foremost providers of visual effects; and Reliance MediaWorks merged their global film and media services business with Prime Focus Limited.
Listed on the BSE and NSE of India, Prime Focus has operations in Bangalore, Beijing, Cape Town, Chandigarh, Delhi, Goa, Hyderabad, Johannesburg, Kolkata, London, Los Angeles, Mumbai, New York, Singapore, Toronto and Vancouver. For more details visit www.primerfocus.com.
On Behalf of the Board of Directors
"Rory Armes"
Rory Armes
Chief Executive Officer and Director
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Except for statements of historical fact, this news release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to: the use of net proceeds from the transaction; the partnership is expected to provide more capacity and volume, and increase the confidence that Hollywood has in Gener8's studio; that the technology will improve the quality of all the industry; and the statements respecting the terms and closing of the transaction. Although Gener8 believes that the expectations reflected in the forward-looking statements are reasonable; there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, risks with respect to: closing the definitive agreements respecting the transaction, obtaining all regulatory and third party consents, obtaining the requisite shareholder approvals for the transaction, meeting our contractual timelines and milestones on our 3D film conversion contracts; general economic conditions in Canada and globally; film industry conditions; competition for, among other things, capital and skilled personnel; changes in economic and market conditions that could lead to reduced spending on 3D film conversion; potential delays or changes in plans with respect to deployment of services or capital expenditures; our ability to hire and retain qualified employees and key management personnel; possibility that government policies or laws may change; amount and timing of operating costs and capital expenditures; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to acquisitions and international expansion; reliance on large customers; reliance on a limited number of suppliers; risks related to the Company's competition; the Company's failure to adequately protect its intellectual property; interruption or failure of information technology systems; the risk that the transaction may not be completed as planned, or at all; and business, legal and/or regulatory risks relating to Gener8's business, financings and strategic acquisitions. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
For more Information, please contact:
Danielle Rockel
Vice President of Corporate Affairs
[email protected]
Suite 100, 138 East 7th Avenue
Vancouver, British Columbia, V5T 1M6
Phone: (604) 669-8885
Fax: (604) 669-8855
SOURCE: Gener8 Media Corp.
